Finland-headed forest industry and energy technology major Valmet Oyj has announced that entered into an agreement on February 26, 2019, to acquire North American-based GL&V, a global provider of technologies and services to the pulp and paper industry. The enterprise value of the acquisition is approximately EUR 113 million on a cash and debt-free basis subject to ordinary post-closing adjustments. The acquisition is estimated to be completed at the earliest on April 1, 2019.
GL&V supplies technologies, upgrades and optimization services, rebuilds, and spare parts for the pulp and paper industry globally, especially in the areas of chemical pulping, stock preparation, papermaking, and finishing. GL&V’s key locations are in Nashua (New Hampshire), Lenox (Massachusetts), and Hudson Falls (New York) in the United States (US), in Trois-Rivières (Quebec) in Canada, in Stockholm, Sweden, in Pune, India, and in Campinas, Brazil.
The acquired operations employ about 630 people of whom approximately 65 percent are in North America and the rest mainly in Europe, South America and India. However, GL&V’s washing, oxygen delignification, and bleaching operations with “Compact Press”, pumps and mixers technology for chemical pulping as well as the related Product Center in Karlstad, Sweden are not included in the transaction scope.
The net sales of the acquired operations were approximately EUR 160 million and the EBITA margin was around 11 percent in the calendar year 2018.
The acquisition has an excellent strategic fit – it strengthens Valmet’s global services business, complements our technology offering and builds further our local presence and capabilities especially in North America. The combination of Valmet’s global reach and GL&V’s product and services offerings for chemical pulping and paper production form a good basis to create new business opportunities and serve our customers even better. GL&V has a team of experts globally and I want to warmly welcome them to become part of Valmet, said Pasi Laine, President and CEO of Valmet.
